UnityPoint Health reports operating margin surged in 2013
UnityPoint Health, a 12-hospital system based in West Des Moines, Iowa, reported an increase in operating surplus in 2013, in part attributable to higher reimbursement from Medicaid and its value-based contracts.
The not-for-profit group saw a 34.5% year-over-year increase in operating surplus during fiscal 2013, which ended Dec. 31. It reported $82.6 million in operating income on $2.8 billion in revenue, compared with $61.4 million on $2.7 billion in revenue during fiscal 2012.
Patient service revenue from Medicaid reimbursement was nearly 16% higher in 2013 than it was the prior year. The system pointed to a 2011 policy change in Iowa that levied an annual tax assessment on certain hospitals to fund Medicaid and obtain federal matching dollars. However, a portion of those funds were returned to hospitals in the form of higher Medicaid reimbursement that is now closer to the cost of providing care.
A similar policy exists in Illinois, where UnityPoint has two hospitals. Medicaid reimbursement from Illinois nearly doubled year over year.
UnityPoint also reported that it recognized $7.8 million in revenue from value-based contracts, a significant increase from only $2.3 million in 2012. Its value-based contracts include its Trinity Pioneer ACO, which began operating Jan. 1, 2012; a commercial accountable care organization in partnership with Wellmark Blue Cross and Blue Shield, which was formed April 1, 2012; and a Medicare shared-savings ACO, which was accepted into the program July 1, 2012.
Iowa Methodist Medical Center in Des Moines is the flagship of UnityPoint Health. The
health system reported strong operating gains for 2013.